HomeMy WebLinkAbout10 Troubleman Truck Rental SB40 AGENDA ITEM #10
TRUCKEE DONNER
Public
MEETING DATE: February 1, 2023
To: Board of Directors
FROM: Brian Yohn, General Services Manager
Michael Salmon, Chief Financial Officer
SUBJECT: Consideration of a Rental Agreement for a 2022 Ford F550
SB40 Boom Truck for the Electric Operations Department.
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to enter a rental agreement for the rental of a 2022 Ford
F550 SB40 boom truck for Electric Operations for a monthly rental cost of$3,662.83 and
totaling $40,291.13 in 2023, with the option to renew until the delivery of the purchased
Troubleman boom truck currently in bid. This is a new rental agreement that replaces the
currently approved 2016 Ford F550 SB37 rental Agreement.
DISCUSSION:
In 2021, the District identified opportunities to improve operational efficiencies by making
changes to the crew structure and positions within the Electric Department. Staff proposed
to reorganize existing electric utility operations crews to the following crew structure and
job assignments:
• One (1) Troubleman FTE;
• Three (3) four person Line Crews consisting of 12 FTE's; and
• Two (2) Substation Lineman/Inspector FTE's.
The Board approved these organizational changes on July 21, 2021.
In addition, the Board approved a second Troubleman FTE position included in the
adoption of the FY22-23 Budget on November 3, 2021.
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In February 2022, the Board of Directors approved the purchase of a second boom truck
for the fleet with a quote provided by Altec Industries, Inc., as well as, the rental of a 2016
Ford F550 SB37 boom truck to equip the newly added Troubleman position until delivery
of the new truck. The rental boom truck allows for the newly added second Troubleman to
keep up with customer demands. A short time after receipt of the rental truck, staff
contacted Global Rental, Inc. expressing concern with possible mechanical issues with the
transmission.
Global Rental, Inc. was contacted and identified a 2022 Ford F550 SB40 that was being
built in North Carolina as an alternative rental vehicle. The 2022 Ford F550 SB40 build is
now available for rental by the District. Delivery to the District of the new rental unit was
expedited to ensure full staffing capabilities during annual winter storm cycle in December
and January.
The monthly rental cost is $3,200, plus taxes and insurance totaling $3,662.83 per month
with a new rental period beginning February 1, 2023 through December 31, 2023, with a
monthly renewal option. Rental expenses for 2023 are anticipated to be $40, 291.13 for
the 11 month rental term.
Additionally, Global Rental, Inc. offers a Rental Purchase Option (RPO) for its rental
vehicles inclusive of a 50% cost credit for rental expenses incurred within the first 12
months credited from the purchase price. This option is currently being analyzed and
considered by TDPUD as an alternative to mitigate vehicle availability challenges and
supply chain concerns.
The District fleet currently includes the following:
3 — Large bucket trucks — District owned
1 — Small bucket truck — District owned
1 — Small bucket truck — Rented
FISCAL IMPACT:
Anticipated annual rental expenditure is $40,291.13 in 2023 with the option to renew on a
monthly basis in 2024 until the purchased Troubleman truck currently under build is
complete.
The rental cost is funded from Vehicle Reserve Fund, consistent with prior rental truck
approval in February 2022. The Vehicle Reserve Fund currently has sufficient funds for
the rental expenditure.
ATTACHMENTS:
None
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